Coal news and updates

The Singapore Exchange (SGX) is planning to launch four products for pricing thermal and coking coal as it boosts efforts to tap into growing demand for hedging tools in Asia amid a steep drop in coal prices this year.

 

A flood of cheap coal imports coupled with slowing growth in China, the world's top coal user, has sent benchmark thermal coal prices near their lowest in about four-and-a-half years at US$73 a tonne currently.

 

SGX said its two thermal coal contracts - SGX API 4 FOB Richards Bay Coal Futures and Swaps and SGX API 5 FOB NewCastle Coal Futures and Swaps - will be launched in July subject to regulatory approval.

 

It will also launch two coking coal contracts that month - SGX TSI Australia Premium Coking Coal Futures and Swaps and SGX TSI China Premium Coking Coal Futures and Swaps - allowing clients to hedge what amounts to a third of steelmaking costs.

 

Source: Reuters